HERMÈS - 2020 Universal registration document

PRESENTATION OF THE GROUP AND ITS RESULTS REVENUE AND ACTIVITY BY MÉTIER

BEAUTY

In April, during the digital edition of the Watches and Wonders trade show in Geneva, Hermès once again forcefully expressed the originality of its voice within the restricted circle of members of Haute Horlogerie , by affirming the territory in which it expresses itself: a singular relationship with time, full of fantasy and emotion, a time with which we play without wanting to control it. This message is supported by the print and digital advertising campaign Le Temps, un objet Hermès . 2020 consolidated the major launches of the second half of 2019 with confirmation of the success of the women’s Galop d’Hermès collection, and the presentation of the new versions of the Arceau “L’heure de la Lune” complication. In addition, the Arceau line was enriched with two new complications: a revisited "petite Lune" available on several models in 38 mm diameters, as well as a model combining two major watchmaking complications, a minute repeater and a tourbillon, presented at the end of the year as a wristwatch and pocket watch. The Arceau “L’heure de la Lune” watch offers a quirky take on the classic “moon-phase” complication. Wishing to restore this star to its central place on the dial, Hermès has made it the “main character” of its piece, while offering a unique perspective on its interpretation. Indeed, it is the traditional functions – hour, minute, date – which become satellites and gravitate above two fixed representations of the Moon, seen from the northern hemisphere and the southern hemisphere. The latter is adorned with an image of a mischievous Pegasus. Applauded by the Grand Prix de l’Horlogerie de Genève (GPHG) in November 2019, in the “calendars and astronomy” category, this watch was presented in 2020 with exceptional new dials carved from rare meteorites, such as moonstones or stones from Mars. The new Arceau grande complication watch includes both a minute repeater and a tourbillon. These movements are visible through the dial cut into the shape of a horse’s head, a pattern that can also be found on the back of the bridges and plates. First presented as a wristwatch, in the fall it was accompanied by pocket versions whose cover reveals another of Hermès’ favourite animals, the colourful T-rex , magnified by the House’s craftpeople. Sales within the Hermès store network also benefited from the strong results of key lines worldwide of the indispensable Cape Cod and Heure H lines , whose constant renewal attracts a growing number of enthusiasts: they have been able to discover more precious, technically innovative and occasionally bejewelled expressions of these emblematic and imaginative lines. Finally, the collection of “exceptional pieces” developed by Hermès confirmed its great success once again this year through jewellery watches (including Faubourg , Klikti , Arceau and Médor ) which showcase the House’s artistic métiers and savoir-faire .

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2020 marks the birth of Hermès’ sixteenth métier , Beauty. The founding act of Hermès Beauty was the launch in the first half-year of the Rouge Hermès collection, dedicated to the beauty of lips. The symbolic number of 24 lipsticks, Hermès objects in their own right, tucked away in their small orange boxes, flaunt colours taken from the silk colour chart, such as the emblematic Rouge H or the mischievous Orange Boîte , while their matte or satin finishes are inspired by the House’s leathers. Rouge Hermès is designed to be a well-being ritual, dedicated to women who share the idea that “beauty is a gesture”. From balm to brush, passing through accessories created by the House’s leather craftpeople, Rouge Hermès promises to reveal the colour of personality in just a stroke and an everyday gesture. This ritual is enriched by a limited edition of four special colours, updated every season to keep pace with fashion. The launch of the Hermès Beauty métier benefited from an unprecedented 360° communication campaign in the first quarter, bringing together buyers from around the world in several stages, before being unveiled to the media and in a selection of Hermès stores and personalised spaces in 35 countries. Although launched in the midst of a health crisis, Hermès Beauty has done more than keep all its promises, and continues its development. In the second half of the year, two exceptional gifts animated the Beauty métier during the holiday season: a “Piano Box” with extraordinary dimensions revealing the complete collection of 24 lipsticks, and a collection of nomadic leather cases, precious and protective. With consolidated revenue of €196 million in 2020, the Watch division represents 3% of Group sales. A genuine watchmaker employing over 300 people in its manufacturing workshop in Switzerland, Hermès now makes the vast majority of its watches movements and components in-house. Its creativity remains Parisian in nature and affirms its unique style, which is invigorated by the other métiers in the House. Its savoir-faire increasingly gives Hermès a singular voice in the watch industry. Despite the global health context and the closure of many stores in the spring, the strong recovery in the second half of the year enabled the Watches division to post sales close to the record level of 2019. Sales growth in Hermès stores was very strong, thanks to the dynamism of the Asian markets. Sales to the network of “external” watch retailers suffered more, particularly to airport points of sale. Hermès continued to reduce the number of these retailers this year in order to make its distribution even more selective. WATCHES 1.6.6

2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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